Shun Risky Schemes, Embrace Regulated Investments, Experts Warn Nigerians

Financial and economic experts have urged Nigerians, particularly low-income earners, to prioritise regulated, low-risk investment options to protect their income amid the country’s prevailing economic challenges.
They stated this in separate interviews in Ibadan weekend.
An agricultural economist at the University of Ibadan, Prof. Wale Oni, said Nigerians must pay close attention to regulatory oversight when choosing investment vehicles to avoid falling victim to fraudulent schemes.
Oni, who is also a member of the Nigerian Economic Society (NES), Oyo State branch, said investments monitored by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) were generally safer.
“Whatever investment you want to get into, the oversight responsibility of the SEC and CBN is very important,” he said.
Drawing from over two decades of personal investment experience, Oni advised Nigerians to consider low-risk instruments such as treasury bills and money market funds, noting that such options currently offer returns of about 16 per cent on average.
According to him, money market investments offer flexibility, as investors can start with relatively small amounts and choose whether to receive interest quarterly or compound it over time.
“The low-risk money market investments can be started with as little as ₦5,000 or ₦10,000, depending on the institution,” he said.
The don stated that investors should avoid high-risk options, especially in uncertain economic conditions.
Oni also advised investors on the implications of recent tax regulations, explaining that withholding tax now applies either to upfront interest payments or at maturity.
He further highlighted government bonds, Sukuk and other fixed-income instruments as viable options, particularly for long-term investors and those seeking faith-compliant investments.
“For anybody who is just trying to build assets, low-risk investments should be the priority,” Oni said.
Also speaking, a financial consultant, Mr Tunji Adepeju, said there were several investment opportunities suitable for low-income earners, stressing the need for diversification.
Adepeju said options such as stocks, mutual funds and government bonds remained relevant, although returns on some instruments might take time to materialise.
The financial consultant stated that average returns range between 14 and 15 per cent.
Adepeju also identified real estate, agriculture and small-scale businesses as long-term investment opportunities, but warned that such ventures require close monitoring to avoid losses.
Meanwhile, a financial expert and treasury accountant, Mrs Pelumi Ukot, urged Nigerians to conduct due diligence before investing, especially in the current unstable economic climate.
Ukot said potential investors should follow business trends, demand financial records and monitor the performance of companies they intend to invest in.
Ukot also warned against unregulated schemes, stressing that funds lost to fraudsters are often difficult to recover.